Volunteer Income Tax Assistance (VITA) Certification Practice Test

Are the Graves required to make a shared responsibility payment on Form 1040?

1. True

2. False

3. Only if their income exceeds certain limits.

4. Only if they don’t have health insurance.

The correct answer is: False

The correct answer is that the Graves are not required to make a shared responsibility payment on Form 1040, as indicated by the chosen response. The shared responsibility payment was a provision of the Affordable Care Act (ACA) that required individuals to have minimum essential health coverage or pay a penalty. However, this penalty was effectively eliminated starting with the tax year 2019 for most states, meaning that individuals, including the Graves, would not face this payment when filing their taxes. In states that had their own mandates, such as California or Massachusetts, individuals might still have to pay a penalty if they did not have health insurance; however, the question suggests a generalized situation without specific state context. Therefore, the conclusion is that under most circumstances, individuals filing their federal income tax for 2024 do not have a shared responsibility payment to account for as per federal guidelines. The other choices imply circumstances under which a payment might still be due, but current regulations for most taxpayers indicate no shared responsibility payment is required.